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C O N T E N T S

Message from the TopCompany Profile　Company Profile　Business SummaryPromotion of CSR Activities　CSR of the Hirose Electric Group　Results of Fiscal Year 2018 and Targets for Fiscal 　Year 2019

Basic Environmental Policy　Basic Environmental Policy

Contributions of connectors to environmental protection Detachability of connectors Application fields of connectorsEnvironmental Management　Environmental Management Structure　ISO14001 Certifications　SDGs Related to Environmental Protection Activities　Compliance with Laws and Regulations　Environmental Audit　Environmental Education　Environmental Impacts due to Business Activities　Environmental Objectives and Level of Achievement

Activities to Reduce Environmental Impacts　Reduction of Energy Consumption　Reduction of Greenhouse Gas Emissions　Reduction of Water Usage　Reduction of Paper Usage　Reduction of Waste and Recycling Activities for recycling sold products　Reduction of Environmental Impacts through Green ICT　Reduction of Environmental Impacts on Living Environment　Preparedness for Emergencies　Biodiversity ConservationCommunication　Social Action Programs　Communication with StakeholdersActivities at Group Sites to Reduce Environmental Impacts　Activities of Domestic Factories to Reduce Environmental Impacts　Activities of Overseas Sites to Reduce Environmental 　ImpactsHistory of Social and Environmental Activities　History of Social and Environmental ActivitiesThird-party Opinion /Response to the Third-party Opinion

Editorial Policy

Hirose Electric and its group companies are undertaking CSR activities to implement their policy of promoting environmental protection and compliance. This report has been compiled to present information about these activities in a way that is easy for our stakeholders to understand. It is also posted on our website to make it accessible to many people both in Japan and abroad.

Period covered by this reportFrom April 1, 2018 to March 31, 2019

Companies covered by this report

Hirose Electric Co., Ltd.Tohoku Hirose Electric Co., Ltd. (Miyako Factory)Koriyama Hirose Electric Co., Ltd. (Koriyama Factory)Ichinoseki Hirose Electric Co., Ltd. (Ichinoseki Factory)＊The activities of some of our overseas production sites are also covered in this report. As of Sustainability Report 2015, CO2 emissions by overseas sites and our business partners, both within and outside of Japan are presented.

Date of publicationJuly 2019

This report refers to the following guidelinesMinistry of the Environment: Environmental Reporting Guidelines (Fiscal Year 2018 Version);GRI Sustainability Reporting Guidelines (Version 4).

Notations

For simplicity, the following names have sometimes been abbreviated as follows: Tohoku Hirose Electric Co., Ltd. is referred to as the “Miyako Factory,” Koriyama Hirose Electric Co., Ltd. as the “Koriyama Factory,” and Ichinoseki Hirose Electric Co., Ltd. as the “Ichinoseki Factory.”

Disclaimer

This report includes not only past factual information but also plans and forecasts that were formulated at the time of publication. These data or statements were considered reasonable at the time of writing based on the currently available information, and thus the outcomes of our future activities may differ from what is described in this report.

02

Message from the Top

We a re unde r tak ing CSR and environmental activities through bringing together the knowledge and wisdom of many people.

Kazunori Ishi iPresident and Representative Director

　　Ever since it began to develop industry-leading connectors with its own technologies, Hirose Electric has established a position that has earned it trust and recognition as a specialized manufacturer of connectors. On a personal note, and on behalf of the entire company, I would like to express our deep gratitude to our customers and business partners. Without their ongoing support, we would not be where we are today. 　　Hirose Electric and its group companies adhere to a guiding philosophy of being a small company that brings together the knowledge and wisdom of many people, i.e.,

“a small company connecting wisdom.” This concept encapsulates our wish to creating innovative products by open-mindedly garnering advice from the outside world and linking the wealth of information offered by external sources with the knowledge and insight that we have accumulated internally, together with our aim of placing high value on close-knit, agile and efficient communication, which is only possible in a small company, and to be an enterprise that is constantly seeking to make quantum advances.

Corporate Social Responsibility (CSR) and

Environmental Activities

　　Through our sales of connectors, which are our main products, Hirose Electric and its group companies have been helping our customers around the world save energy. Believing that connectors can help save energy because their detachability enhances users’ productivity and facilitates transportation of their products, we have incorporated this concept into our new Basic Environmental Policy, and we are conducting our business based on this new policy.　　In order to reduce environmental impacts, we are progressively reducing energy consumption and waste

generation per unit of sales. We have adopted a goal of reducing energy consumption per unit of sales by 1% of the 2012 level for each year up to 2020. Although we did not meet our energy target in fiscal year 2018 due to the addition of facilities, we were active in installing solar power generation facilities and switching to high-efficiency air conditioning. Likewise, in fiscal year 2019, we will continue our activities as part of our medium- to long-term plan.Our activities for conserving biodiversity include annual provision of e-learning to all employees. This is aimed at encouraging them to voluntarily undertake environmental activities. With a view to manufacturing products with low environmental impacts, we are strengthening our quality management by conforming to chemicals-related laws and regulations, which are becoming more stringent with every passing year, and by rapidly responding to requests from our customers.　　In addition, we have established a CSR Committee, which consists of full-time directors and executive officers, to ensure that the objectives of CSR are integrated into all activities.　　As a company involved in international business, we will continue to strengthen our CSR and environmental activities.

Publication of Sustainability Report 2019

　　Hirose Electric and its group companies have produced the Sustainability Report 2019 in order to present our CSR and environmental activities to stakeholders and the general public in a clear and straightforward manner. We would appreciate it if you would read this report and give us your frank opinions so that we can continue to improve our activities in these areas.

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SUSTAINABILITYREPORT

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20182017201620152014

(％)

＊1

(100 million yen)

Operating profit margin

Operating profit

Sales

事務機

コンピュータ関連

通信機器

タブレット・ノート PC

デジタル家電

自動車

ｽﾏｰﾄﾌｫﾝ・携帯

一般産機

Smartphonesand

mobile phones25%

Vehicles 18%

Tablets and laptops 6%

　　　Computers and related products 3%

　Digital home appliances 8%Industrial Equipment 35%

Wireless devices 4%

Office machines 2%＊2

＊3

営業利益：231 億 6,000 万円（2019 年 3 月期 / 連結）従業員数：4,836 人（2019 年 3 月末期現在 / 連結）本社所在地：〒 141-8587 東京都品川区大崎 5 丁目 5 番 23 号子会社：国内 3 社　国外 13 社　　　

＊ 1　Conforms with the International Financial Reporting Standards (IFRS) from fiscal year 2018.

　 Business Summary

Consumer/Computer peripheral devicesCommunication devices

Smartphone/Wearable devicesIndustrial/Medical equipments and Others

Vehicles

【Business Areas】

Number of employees: 4,836 　(for the year ended March 31, 2019/Consolidation)Address of Head Office: 　5-23, Osaki 5-chome, Shinagawa-ku, Tokyo 141-8587, JapanNumber of subsidiaries:　3 in Japan, and 13 outside Japan　

Name: Hirose Electric Co., Ltd.Founded: August 15, 1937Paid-in capital: 9,404,000,000 yenSales: 124,590,000,000 yen　(for the year ended March 31, 2019/Consolidation)Operating profit: 23,157,000,000 yen 　(for the year ended March 31, 2019/Consolidation)

Changes in sales and profit Breakdown of sales by application area

　　From the time they developed Japan's first one-of-a-kind connectors in Japan in 1959, Hirose Electric and its group companies (hereinafter referred to as the Hirose Electric Group) have been leading the industry in technology as a development-oriented enterprise. Our great strength has been industrial connectors, which are more difficult to develop than connectors for household use. Building on the technical know-how we had accumulated in this area, we entered the consumer products market in the recent past, and have been expanding the range of market segments in which we do business. We have received high recognition both within and outside Japan. The Hirose name is evolving into a global brand for connectors based on their capacity to meet a diverse range of international requirements.

　 Company Profile

Company Profile

＊ 2 Wireless devices: Wireless communication devices excluding smartphons and mobile phones.＊ 3 Communications devices: Laptops are excluded.

04



Promotion of CSR Activities

　CSR of the Hirose Electric Group

Code of Conduct

Participation in the UN Global Compact

Social Responsibilities

　　The Hirose Electric Group has incorporated its existing activities related to environmental preservation and compliance into its Corporate Social Responsibility (CSR), and will promote CSR as its main policy.

　　In pursuing our business activities, we are required not only to comply with laws and regulations but also

to exercise our discretion informed by a higher sense of ethics, integrity and social responsibility. To enable our employees to exercise the above in every situation, in an ever-changing business environment, we have defi ned the following Code of Conduct to which every member of the Hirose Electric Group must adhere. We will continuously review and improve the contents of the Code of Conduct, which currently include:

1. Our Attitude in Business2. Relations with Society3. Relation between Personnel and Workplace4. Management of Company Assets and Information5. Scope of Application and System for Promotion6. HRS Group Basic Policy on Antisocial Forces 7. HRS Group Privacy Policy8. HRS Group Safety and Health Policy9. HRS Group Basic Policy on Anti-Bribery

10. Facilitation Payments11. HRS Group Basic Policy on Labor Management12. HRS Group Basic Policy for Information Security13. HRS Group Sourcing Policy for Confl ict Minerals14. HRS Group basic Policy on Corporate Ethics Management

　　On February 9, 2012, Hirose Electric and its group companies expressed their support for the "Global Compact" advocated by the United Nations, and were registered as participating companies. The Global Compact is a voluntary initiative in which each company provides creative and responsible leadership, acts as a good corporate citizen and participates in the development of a global framework for realizing sustainable growth. Companies participating in the Global Compact consent to support and abide by the ten essential principles of CSR that cover the protection of human rights, the elimination of all forms of unfair and unjust labor practices, the protection of the environment, anti-corruption measures, and are pledged to carry out activities to realize the above with the commitment of their chief executive.　　Participation in the UN Global Compact prompted the Hirose Electric Group, as a good global citizen, to strengthen its ongoing CSR activities in order to contribute to the development of a sustainable society.

　　The Hirose Electric Group has established a CSR and Risk Committee, consisting of full-time directors and executive officers. The committee makes decisions on important matters concerning CSR. Furthermore, we have appointed a person to be responsible for CSR and Risk. 　　Permanent organizations such as Environmental Management Committee, and Quality Control Committee and their subsidiary organizations are promoting matters specifi c to CSR. CSR promotion meeting

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Hirose Electric Group's CSR management

Corporate

governance

ComplianceRisk

management

CSR Management　　The CSR management of the Hirose Electric Group is founded on three principles: corporate governance, compliance, and risk management.

【Corporate governance】　　We place the highest priority on strengthening our corporate governance in order to maintain and enhance our long-term competitiveness in the global market. We are also working to increase our corporate value by streamlining our business management and augmenting our profitability while discharging our social responsibilities to stakeholders.　　As part of our commitment to ensuring the integrity of our business decisions, Hirose Electric has invited four independent people from outside the company to serve on the board of directors or as auditors. From an objective standpoint, they oversee our business management practices and provide useful advice from a range of perspectives.

【Compliance】　　The Hirose Electric Group fully recognizes the importance of fulfilling its social mission and corporate responsibilities in the course of its business activities. This is achieved by implementing management policy that is based on the company's core principles. To meet these responsibilities in all situations in the constantly evolving management environment, we have carefully formulated our guiding principles and criteria for action. These are contained in the Hirose Electric Group Code of Conduct issued in March 2004, and every employee is expected to follow it.　　Being a global enterprise, we revised this code of conduct in 2007 to make it applicable to those working at our overseas sites. At the same time, to ensure that the code was understood and observed at these sites, it was translated into English, Chinese and the other languages spoken in all the areas in which we operate. We have been successively revising the HRS Code of Conduct, including addition of a supplementary policy.　　Based on the code, we have been providing ongoing compliance education to ensure that every employee conducts themselves honestly and meets the highest ethical standards.　　We introduced a whistle-blowing system in 2008.　

【Risk management】　　To address a variety of risks that may affect the Hirose Electric Group, we established a Risk Management Committee, which consists of full-time directors and executive offi cers, and relevant organizations that report to it. We share information about risks associated with our business activities, and implement risk management.　　As a risk management measure, we formulated our Business Continuity Plan (BCP) in 2009. The types of risk assumed in the BCP include new strains of infl uenza in addition to major earthquakes and fi res. The BCP describes in detail the measures to be taken to prevent or mitigate operational risks so that our business can continue to operate or quickly resume operations in the event of an emergency or a disaster. This plan is distributed to all employees.　　We also established our Information Security Policy in 2008. We regularly provide e-learning opportunities to our employees and others who handle information about the Hirose Electric Group so that everyone concerned will observe this policy in their business activities.

06



Social Responsibilities

１

２

３

４

５

　　The Hirose Electric Group considers it important to assume the five social responsibilities shown in the following fi gure.

【Responsibilities to our customers (guaranteeing product quality)】　　The responsibility of the company and its employees is to provide high-quality and highly value-added products that meet the needs of our customers. This concept is incorporated in our “Quality policy” and is observed by all employees.

Quality Policy

1. Abide by the “QUALITY FIRST” policy and always be committed to advance customer’s satisfaction.2. Proactive approach towards QUALITY needs of market and developing new products accordingly.3. Aim to be an industry leader by continuous & reliable QUALITY improvement.

　　For the purpose of always delivering valuable products to customers, we have established a quality management system that covers all activities (planning, design, production, distribution, and service, in connection with products) and work to improve quality every day.　　We sell as many as fifty-something thousand kinds of products, many of which are constantly revised into new products. By establishing a unique development system, in which even engineers actively visit customers in order to keep up with customers' current needs, and by having not only the Technical Section but also the Production Techniques, Production, Purchase, and Quality Assurance Sections join the development team, we aim to supply high-value added products that will satisfy customers, in a short development period.　　The policies, strategies, and goals concerning quality, as well as important measures for quality improvement, are discussed and determined in Quality Management meetings. Quality goals, when incorporated into management policies, are made known to each employee of each section, and continuous quality improvement is being promoted under the guidance of the top management. 　　Furthermore, we are engaged in various quality improvement activities for the purpose of realizing strong workplaces in which employees can think and solve problems all by themselves.

【Responsibilities to our suppliers and contractors】　　We have formulated the Green Procurement Guidelines and the Purchase Management Rules to ensure that we procure raw materials and equipment that are free from harmful substances, and build a strong partnership with our suppliers so that we work with them closely in our business operations. We also request our suppliers to establish their own CSR systems.

Social responsibilities

assumed by the Hirose Electric

Group

Responsibilities to our customers (guaranteeing product quality)

Responsibilities to our suppliers and contractors

Responsibilities to our employees

Responsibilities to our stockholders and investors

Responsibilities to the general public and local community

07

【Responsibilities to our employees】　　We provide education and trainings in a planned and consistent manner for the purpose of cultivating human resources who understand our management principles, firmly collaborate in achieving our goals, and are active globally. We provide language trainings (especially English training) for the purpose of our employees' language development and send our employees to work overseas through overseas study programs, etc., thereby actively cultivating human resources who can work globally.　　In addition, we make efforts to create workplace environments that are considerate of our employees' safety and physical/mental health, and take measures for prevention of disasters and to respond to emergencies. Every year, we conduct workplace patrol and risk assessment at every office in order to detect and prevent potential dangers hidden in the workplace. In addition, we continue to provide trainings on safety.Furthermore, toward preventing traffic accidents involving company cars and offices that permit commuting by car, we conduct safe driving trainings at each office with the help of the local police station, trying to make our employees conscious about safe driving.　　We encourage our employees to have and follow up the results of routine physical examinations and complete medical checkups. Recently, we have established a consulting system in which our employees can consult our contracted industrial physicians and counselors, and we have begun to provide training sessions for managers, as measures for mental healthcare. Since 2016, we have been conducting stress checks among employees.　　With regard to fire prevention, we have established a self-defense fire-fighting team at every office and conduct an emergency drill, including escape, notification, and initial firefighting, with the help of the local fire department every year.　

【Responsibilities to our stockholders and investors】　　To ensure that the company's accountability obligations are satisfied, and to maintain a high level of management transparency for stockholders, investors and other stakeholders, we are disclosing required information accurately, on a timely basis, and in a fair manner. In addition, we are providing appropriate information at financial results briefing sessions and through our website in accordance with our information disclosure policy.

【Responsibilities to the general public and local community】　　We have defined the Hirose Electric Group Code of Conduct, which requires us to interact with local communities, and, in the international sphere, respect the culture and customers of the countries in which we operate, and contribute to the development of these countries. All our employees are working in accordance with this code of conduct. In addition, we are providing extensive support for art and cultural activities. Hirose International Scholarship Foundation, in which the President and Representative Director of our company serves as director, provides scholarships to students from other Asian countries.


Scholarship students exchange meeting

Training camp for new recruits

08

For how many years will it be used?

To what extent must the product be able to withstand harsh environmental conditions?

How strong must the connectors be?

What connector engagement functions are required?

What environmental issues must be addressed?

What materials will be used?

What pulling mechanism will be used?

How much pressure will be applied?

What chemicals are used?

What surface treatment will be used?

Where will it be used?

Who will use it?

What are the environmental issues?

Feedback ― PDCA cycle ―

Feedback Transfer processTransfer documents and meetings

Formulate hypotheses and verify them through the PDCA cycleImprove precision of FMEA

The production division defines important management points【Item/method/standard】

Prototyping and product evaluation

DR meeting

Design FMEA

Design and development process

Manufacturing process

Sales Customer requirements

〈Process design〉〈Jig and tool design〉【Verification using Cpk】

Input

＊1

＊2

＊3

What will be made?

〈Standards used in design〉

【Design specification】


Development of Products that are Eco-friendly and Comply with Laws and Regulations

Responsibilities to our customers(guaranteeing product quality)

Development of Eco-friendly Products　　The Hirose Electric Group provides eco-friendly connectors, designed with due consideration given to product lifecycles, to customers engaged in a wide variety of fields, including mobile devices, communications and broadcasting, computers, automobiles, consumer electronics, and measurement and control. In every one of those fields, we have minimized connector sizes. This contributes, in turn, to miniaturization of the customers' products and to overall savings in use of resources, from components through finished products. We display details of materials used in and on our packaging materials, such as embossed carrier tapes and reels, to facilitate recycling of such materials.We are also making our connectors more energy-efficient and easy to disassemble and recycle.

Compliance with Laws and Regulations　　The Hirose Electric Group is strengthening its quality control by responding rapidly to revisions of laws governing chemicals contained in products and the resulting changes in customer requirements, both of which are becoming increasingly stringent, year on year.　　During product design, we select eco-friendly parts and materials that comply with our green procurement guidelines. At every important stage in the development process, we ascertain that the product concerned both satisfies customer requirements and complies with relevant laws and regulations.　　We started to bring our activities into line with the RoHS directive*1 in 2005. On June 4, 2015, a revised directive with four prohibited substances added was promulgated, and we completed the build of a preparation and warranty system for substitute products by July 2018, which is one year before the enactment of the law.　　Ever since a list of substances of high concern (SVHC) associated with the REACH regulation*2 was first released in November 2008, we have been meeting the compliance requirements for substances on the list, which is updated frequently, and publicly disclosing information regarding chemicals used in our products, in response to customer requests.＊ 1 RoHS directive: This was promulgated on February 13, 2003 and enforced on July 1, 2006 by the European Union (EU). This directive restricts 　　 the use of six specified toxic substances in electric and electronic products: lead, mercury, cadmium, hexavalent chromium, polybrominated 　　 biphenyl (PBB), and polybrominated diphenyl ether (PBDE).＊ 2 REACH regulation: Regulation concerning registration, evaluation, authorization and restriction of chemicals, promulgated 　　 on December 30, 2006 and enforced on June 12, 2007. This regulation prohibits selling products that contain unregistered chemicals within 　　 the European Union. It also includes regulations governing the conduct of producers and importers, and the supplier's obligation to make　　 relevant information public.

Design review (Mass production DR)　

Design Review　　In line with our quality standards, we check to ensure that each product meets customer requirements, complies with relevant laws and regulations, and is designed with due consideration for the environment. Three-dimensional graphics are used to improve des ign rev iew efficiency and reduce paper consumption. This also leads to reductions in development periods and costs.＊ 1 Cpk: Process capability index＊ 2 FMEA: Failure mode and effect analysis＊ 3 DR: Design review

09


　 Results of Fiscal Year 2018 and Targets for Fiscal Year 2019

Item Issue Targets for fiscal year 2018

Results of fiscal year 2018 Evaluation Targets for fiscal

year 2019

1.Responsibilities　to customer

Strengthen the organizational structure for

the promotion ofCSR

By strengthening the CSR management system, we will aim to make a system that will enhance PDCA in more detail.

We organized the company rules related to the CSR management system, and established a system that enhances PDCA based on those rules.

○

M a i n t a i n t h e C S R management system and enhance PDCA to make improvements.

Deal with conflict minerals

Cont inue approaches according to the policy on conflict minerals that have been made public by the company, and try to raise awareness in employees.

We cont inued to ra ise awareness of conf l ic t materials in employees, as well as keeping our suppliers informed. ○

Continue approaches a c c o r d i n g t o t h e p o l i c y o n c o n f l i c t minera ls that have been made public by the company, and try to raise awareness in employees.

Enhance customer

satisfaction

M a k e m o r e v i s i t s t o customers’ companies to grasp their needs.Make further improvements in products and services provided to customers.

We planned on making regu la r v i s i t s t o key customers, but we did not do some of the regular visits. △

D e e p e n o u r understanding of how our cus tomers are using Hirose Electric products, and utilize t h a t f o r p r o d u c t design and addressing inquiries.

2.Responsibilities　to suppliers

Promote CSR procurement

Keep up efforts in asking suppliers and contractors for their input in our CSR activities so that the whole supply chain could work in progression together.

W e r e q u e s t e d o u r suppliers and contractors to understand the content of the po l ic ies of the v a r i o u s C S R - r e l a t e d activities, but our efforts have been somewhat insufficient.

△

Keep up ef for ts in asking suppliers and contractors for their i n p u t i n o u r C S R a c t i v i t i e s s o t h a t t h e w h o l e s u p p l y chain could work in progression together.

Request partner companies to adopt BCP

C o n f i r m w a y s t o correspond if production facilities do not function in suppl iers’ business continuation plan, and a s k f o r m e a s u r e s t o correspond.

We have only confirmed for some suppliers.

△

Continuously confirm the business continuity p r o g r e s s s t a t u s o f s u p p l i e r s , a n d a s k f o r m e a s u r e s t o c o r r e s p o n d i f production facilities do not function.

3.Responsibilities　to employees

Share our core values

Continue the group’s activities for promoting u n d e r s t a n d i n g a n d implementat ion of our core values based on our philosophy.

S t u d y g r o u p s w e r e joint ly held in several departments to promote understanding in more diverse situations.

○

Continue the group's activities for promoting unders tand ing and implementation of our core values based on our philosophy.

Foster globally adaptable human

resources

Strengthen activities to foster globally adaptable human resources through personnel and language training.

W e h a v e c o n d u c t e d training to foster globally a d a p t a b l e h u m a n resources and language training in accordance with our annual training schedule.

○

Continue the group’s activities for promoting unders tand ing and implementation of our core values based on our philosophy.

　　The following table shows the results of fiscal year 2018 and the CSR targets of the Hirose Electric Group for fiscal year 2019. The results are evaluated using a three-grade scale: (○: targets achieved; △: relevant activities in progress; and ×: targets not yet achieved). We will continue these activities in order to fulfill our social responsibilities.

10


Item Issue Targets for fiscal year 2018

Results of fiscal year 2018 Evaluation Targets for fiscal

year 2019

3.Responsibilities　 to employees

Promotecompliance

Continuously disseminate information on compliance to enhance awareness.

Five e-mail newsletters focusing on compliance have been sent per year. ○

Continuously disseminate information on compliance to enhance awareness.

Cont inue to execute se l f checks in order to ident i fy and solve problems.

Annual self-check carried ou t du r i ng Co rpo ra te Ethics Month (December). ○

Continue to execute self-checks in order to identify and solve problems.

Cont inue to conduct training on harassment.

We have conducted training on harassment. ○

Continue to conduct training on harassment.

Promote industrial

safety and health

Continue industrial safety and hea l th act iv i t ies , i n c l u d i n g t h o s e a t overseas factories.

Each business establishment, including each overseas factory, has formulated an annual plan on safety and health, and improved the plan by periodically checking its execution.

○

Continue industrial safety a n d h e a l t h a c t i v i t i e s i n c l u d i n g a t o v e r s e a s factories.

Adopt BCP in overseas

factories

Study measures fo r resolving issues related to product supply in times of emergency, including t h o s e a t o v e r s e a s factories, and establish a n o r g a n i z a t i o n a l structure for supply.

We sorted out the issues related to product supply in general, however, some specific measures have not been put in place, including for overseas factories.

△

S t u d y m e a s u r e s f o r resolving issues related to product supply in times of emergency, including those at overseas factories, and establish an organizational structure for supply.

4.Responsibilities 　to stockholders　 and inbestors

Promote IR activities

Further strengthen and improve IR activit ies i n c l u d i n g p r o v i d i n g o u r i n v e s t o r s w i t h i n fo rmat ion th rough q u a r t e r l y f i n a n c i a l r e s u l t s b r i e f i n g sessions and disclosing information in a timely manner through our webs i t e , as we l l a s providing information to individual investors.

We have striven to provide our investors with information c on t inuous l y t hr oug h quarterly financial results briefings and tried disclosing timely information through our website, as well as provide information to individual investors.

○

Further strengthen and i m p r o v e I R a c t i v i t i e s including provid ing our investors with information through quarterly financial results briefing sessions and disclosing information in a timely manner through our website, as well as providing information to individual investors.

5.Responsibilities 　to the general 　　public and local　communities

Promote social action

programs

Continuously carry out social action programs.

Each business establishment has continued to participate in activities involving local communities. ○

Cont inuously carry out social action programs.


11


　Basic Environmental Policy

Basic Environmental Policy

　　Having been incorporated into a myriad of electronics devices, connectors from Hirose have become an integral part of people's lives domestically and overseas. As we consider preservation of the global environment to be one of the primary responsibilities of a corporation that manufactures products that are distributed worldwide, the Hirose Electric Group formulated its Basic Environmental Policy in 2001. A revised version was released on April 1, 2011, adding our commitment to the preservation of biodiversity, as we also hold this to be an important facet of corporate responsibility.The latest revision was made on January 18, 2016 to accommodate the revision of ISO 14001.　　Our current environmental activities are based on this policy.

　　As is fitting for a company whose slogan is "Creative Links to World Electronics," the Hirose Electric Group recognizes the importance of preserving the global environment as one of the basic business challenges associated with its global ambitions. We will therefore promote corporate activities that give full consideration to conservation of the environment and biodiversity.　　Connectors, which are our main products, help to save energy because their detachability enhances the users’ productivity and facilitates transportation of their products. They are used in environmentally friendly products, such as electric vehicles and LED lights. Through the utilization of our connectors, we will contribute to the realization of a low-carbon society, preservation of the environment, and conservation of biodiversity.　　Recognizing that in an endeavor to preserve the environment it is important to adopt environmental management that both is effective and conforms to the relevant environmental management system standards. Hirose Electric and its group companies are committed to conforming to the international standard ISO 14001 and are implementing the following environmental protection activities.

1.　We will ensure that we understand the conditions surrounding our company, the needs of our stakeholders, and the impact of our activities and products on the environment. Based on these fi ndings, we will identify what we must do to protect the environment, ensure that we meet our conformance obligations, and determine the risks and opportunities associated with undertaking such activities. We will promote environmental protection and prevention of pollution by planning and implementing our activities accordingly.2.　We will comply with environment-related laws, regulations, ordinances, and external requirements that we subscribe to.3.　We will promote the following activities as priorities in our business activities:　・Design, production, and marketing of products those are environmentally friendly 　・Promotion of energy conservation through eff ective utilization of resources, streamlining of operations and reduction of waste　・Promotion of reduction of industrial waste such as metal chips and waste plastic, and promotion of 　　 recycling and reuse through segregation.4.　We will provide in-company training on preservation of the environment and conservation of biodiversity, and raise the awareness of, support, and ask for cooperation from our business partners and clients.5.　We will continuously improve our environment management system in order to enhance the results that our environmental preservation activities will deliver.

Basic Environmental PolicyJanuary 18, 2016PresidentHirose Electric Co., Ltd.


12


　 Detachability of connectors

Contributions of connectors to environmental protection

　 Application fi elds of connectors

　　Connectors, which are the major product of the Hirose Electric Group, have the following functions. Thanks to these, connectors not only provide convenience to our customers and users but also help to save energy and resources and reduce waste, thereby contributing to the realization of a low-carbon society.

　　Connectors are also used in environmentally friendly products such as the following.

○ Hybrid cars and electric vehicles (contribution to reduction in exhaust gas and prevention of global warming)○ Mobile phones, smartphones, videoconferencing systems (contributing to the realization of a low-carbon society by reducing the need to travel)○ Products for vehicles and industrial equipment (contribution to resource saving by extending product lifetime)○ Products with high environmental performance, such as LEDs (contribution to energy saving)

Function Current status If connectors did not exist… Impact on the environment

Maintainability

・It is possible to replace only the faulty parts.

・It would be necessary to replace the entire unit rather than only the faulty parts. ・Increase in waste

・Uneconomical replacement of the entire unit

Expandability

・Devices can be added if and when necessary. ・All potentially needed devices

should be installed at the outset.・Since functions that may later be found to be necessary cannot be added, the entire unit would have to be replaced.

・Increase in power consumption・Increase in resources used・Uneconomical installation of unnecessary devices・Increase in waste・Uneconomical replacement of the entire unit

Productivity

・Diff erence devices can be produced in parallel.

・Since devices cannot be produced separately, production would be ineffi cient.

・Drop in production effi ciency・Increase in power consumption

Transportability

・Parts of a large product can be transported separately.

　

　　

・Since a product cannot be disassembled into separate parts, transportation would be ineffi cient.

・Increase in use of transportation energy・Increase in storage space


13


　Environmental Management Structure

Environmental Management

　ISO14001 Certifications

<Environmental management system organization>

　　The Hirose Electric Group organized an environmental management committee, headed by the President and Representative Director of Hirose Electric, and built an environmental management system (EMS). The system spans four organizations: the groups within the Head Office of Hirose Electric and the three domestic factories: Ichinoseki Hirose Electric, Tohoku Hirose Electric, and Koriyama Hirose Electric.　　In accordance with the Hirose Electric Group's overall targets, which conform to our environmental policy, individual factories, divisions, and departments set their own objectives and engage in their own environmental management activities. Each month, individual factories and divisions measure progress toward the achievement of their objectives, and share this information with other organizations. This information is reported to management each quarter, and individual organizations receive instructions from management on how to make improvements where this is deemed to be necessary.　　The environmental management committee, which consists of management and division directors, is convened monthly to share information and perform a management review.

　　Ichinoseki Hirose Electric acquired ISO14001 certification in 1999. The certification was extended to cover Koriyama Hirose Electric and Tohoku Hirose Electric in 2000. In 2002, the Hirose Electric Group, including the three domestic factories, acquired an integrated certification. This demonstrates our commitment to environmental protection.We completed migration to the revised standard (ISO14001:2015).　　All of our overseas factories have acquired ISO14001 certification.

Chief environmental officer

Internal environmental auditor

Environment management office

Chairman

Ichinoseki Hirose Electric

(Ichinoseki Factory)

Tohoku Hirose Electric

(Miyako Factory)

Koriyama Hirose Electric

(Koriyama Factory)

Division directorDivision directorDivision director

Division environmental

management leader


management leader


management leader

Hirose Electric Yokohama Center

(Administration Group,Sales & Marketing Group, Engineering Group, Production Group,

Quality Assurance Division, Production Techniques)

Sales & Marketing

Group

Engineering

Group

Production

Group

Quality Assurance

Division

Production Techniques

Division director

Kansai

Branch

Division environmental management leader

Chubu

sales office

Environmental activity

promotion leader

Environmental

activity

promotion leader

Environmental

activity

promotion leader

Environmental

activity

promotion leader

Environmental

activity

promotion leader

Environmental

activity

promotion leader

Administration

Group

Kikuna Office

West japan

sales office

Kitakanto

sales office

Headquarter

Environmental

activity

promotion leader

Environmental

activity

promotion leader

1999 Ichinoseki Hirose Electric Co., Ltd.

2000 Koriyama Hirose Electric Co., Ltd. Tohoku Hirose Electric Co., Ltd.

2002 The certification was extended to cover Hirose Electric Co., Ltd. (including the domestic three factories), and it was converted to an integrated certification.

2004 Hirose Electric Malaysia P.T. Hirose Electric Indonesia Hirose Electric (Dongguan, China)

2008 HIROSE KOREA Co., Ltd.

2009 Hirose Electric (Suzhou, China)


14


　　 Environmental management activities

Prom

otion of an environm

ental managem

ent system

Com

pliance with

environmental law

s and regulations

Sale of environmentally

friendly products

Energy-saving activities

Greenhouse gas reduction

activities

Water usage reduction

activities

Paper usage reduction

activities

Waste m

anagement and

recycling activities

Reducing the load on the

environment through green

ICT

Preservation of biodiversity

Renew

able energy (Solar pow

er generation)

Publicity using

Sustainability Reports

The food and agriculture sector offers key solutions for development, and is central for hunger and poverty eradication.

〇〇〇〇〇〇〇〇〇〇

Clean, accessible water for all is an essential part of the world we want to live in.

〇〇〇〇〇〇〇

Energy is central to nearly every major challenge and opportunity. 〇〇

Sustainable economic growth will require societies to create the conditions that allow people to have quality jobs.

〇〇〇

Investments in infrastructure are crucial to achieving sustainable development.

〇〇〇〇〇〇

There needs to be a future in which cities provide opportunities for all, with access to basic services, energy, housing, transportation and more.

〇〇〇〇〇〇〇〇〇

Responsible Production and Consumption 〇〇〇〇〇

Climate change is a global challenge that affects everyone, everywhere.

〇〇〇

Careful management of this essential global resource is a key feature of a sustainable future.

〇〇〇〇〇

Sustainably manage forests, combat desertification, halt and reverse land degradation, halt biodiversity loss

〇〇〇〇〇〇〇

　SDGs Related to Environmental Protection Activities

　　The Hirose Electric Group will contribute to achieving the “Sustainable Development Goals (SDGs)” adopted by the UN, through business and environmental activities. The table below shows the relationship between the key environmental management activities of the Hirose Electric Group and the SDGs. Focusing on the SDGs, we will promote our environmental activities.


15


Environmental ｐatrol

　 Compliance with Laws and Regulations

VOICE

Compliance with Laws and Regulations

　　At Koriyama Factory, EMS committee members patrol the inside of the factory regularly on a monthly basis to check if the factory satisfies the laws, regulations and company rules that it must comply with, and reports the result to the factory manager at the EMS committee meetings.　　An improvement request is sent to the managing department if irregularities found during a patrol, and the next patrol checks if the improvement has been made.In fiscal year 2018, 6 irregularities were found during 12 patrols, and all were resolved.　　As an example of an irregularity, it was found that waste was not being separated correctly at the waste storage location, so the notices were improved, and an EMS committee member provided an explanation to all employees. As a result, the employees understood the types of waste and the waste disposal rules, the number of issues was reduced, and the recycling of resources came to be done correctly.　　 W e w i l l c o n t i n u e t o conduct pat ro ls to ensure reliable compliance with the laws, regulations and company rules.

Yukihiro TakahashiAMC Quality Control SectionKoriyama Hirose Electric

　　The Hirose Electric Group is ensuring compliance with the relevant laws and regulations through the following activities. We have created lists of all the environment-related laws, regulations and rules that apply to Hirose Electric and individual factories. We have also created lists (database) of documents that must be submitted to the relevant government offices to prevent any omissions when we submit such documents.　　We periodically ascertain compliance with the relevant laws and regulations based on the assessment standards we are legally required to comply with, and also check compliance with any agreements we have concluded with municipalities.　　In addition to the above, we are reinforcing our supervision through a monthly environmental patrol at each factory. The patrol team checks whether our daily activities comply with the relevant laws and regulations.　　As a result, no significant violation of the relevant environmental laws and regulations was found during fiscal year 2018, as had been the case in previous years.　　In addition, we have requested our suppliers to build environmental management systems and comply with relevant laws and regulations, and we have checked the progress they have made in the creation of these systems. Furthermore, we have visited their sites to verify legal compliance.

List of environmental laws and regulations, and lists of documents to be submitted (Database)


16


　Environmental Audit

　 Environmental Education

Internal audit

Education for designers

External audit

Training on gas cylinder installation

Education at a factory

　　The Hirose Electric Group carries out an internal environmental audit to make sure that its environmental management system is working effectively and being properly maintained in accordance with ISO14001.In fiscal year 2018, the audit was conducted from August 1 to September 7.　　This internal audit identified four problems but none of these were major such as significant deviations from the plan or problems affecting the entire system. All the identified problems have since been rectified.　　To maintain and renew ISO14001 certification, we undergo periodic external reviews. In fiscal year 2018, the periodic audits were conducted from December 4 through 7. The reviewers confirmed that our environmental management system is being properly maintained.

　　The Hirose Electric Group provides environmental education for all staff so that every employee understands the importance of environmental protection activities, and has a clear understanding of his or her responsibilities when engaging in these activities. Also, necessary competence at each base of operations is decided, and training is planned and carried out to acquire those capacities.　　In addition, we provide specialized education for those personnel who are involved in any work that could potentially cause an emergency or a significant environmental impact. Moreover, we raise awareness among employees of the importance of biodiversity by providing e-learning on the subject and exchanging information about biodiversity.

E-learning about biodiversity


17


GAS

CO2

19.449 millionｋWh(17.706 millionｋWh)※1

397 m3(512 m3)

91ｋｇ(160 ｋｇ)

0 kℓ(49.5 kℓ)

0.3 kℓ(1.5 kℓ）

0.78 kℓ(1.10 kℓ)

50.7 kℓ(53.1 kℓ)

42.4 km3(37.2 km3)

4.5 km3(4.3 km3)

3,029 t(2,040 t)

28.4 t(32.0 t)

356.7 t(294.2 t)

10,195ｔ-CO2(9,624ｔ-CO2)

318.4 t-CO2(224.8ｔ-CO2)

347.9ｔ(511.7 t)

613.9ｔ(619.7 t)

※2

Gas City gas

FuelFuel oil A

Kerosene

Light oil

Gasoline

Copy paper

Raw materials

Clean water

Groundwater

Water resources

Resources

Paper resources

Cardboard

Electric powerEnergy

817.530 million pieces(812.759 million pieces)

Emissions in the air

Emissions from physical distribution

Specially controlled industrial waste

Produced products

General industrial waste

Waste

Water discharge

Water discharge

Products

CO2

46.8 km3(41.6 km3)

Production

Sales and physical distribution

INPUT OUTPUT

OUTPUTINPUT

　Environmental Impacts due to Business Activities

　　We are making sure that our business activities are eco-friendly by ascertaining what impacts these activities have on the environment.　　Activities with the potential to cause environmental impacts during fiscal year 2018 are listed below.

＊ 1 ( ) shows data for fiscal year 2017.＊ 2 The real CO2 emission factors of individual power companies were used in the calculation.


18


　 Environmental Objectives and Level of Achievement

Hirose group's objectives Targets for fiscal year 2018 Achievement in

fiscal year 2018 Evaluation＊3

Contribute to realization of a low-carbon society,environmental protection, and conservation of biodiversity through sales of connectors

Complete the planned activities for strengthening control over the use of prohibited materials 　100％ ○

Check 97% of our business partners to find out if their green procurement guidelines are being kept up-to-date 　100％ ○

Revise RoHS (banning of phthalate-containing products) and achieve a progress rate of 80% of the plan. 　90％ ○

　Reduce spoilage cost　Cleared the a　chievement standard ○

　Reduce inventory waste of individual items and products　Cleared the a　chievement standard ○

Reduce wasteand operateefficiently

Reduce energy usage by 4.90% from fiscal year 2012 (annual average 1.0%)

　Reduced by 10.8% ＊ 2 　×＊ 4

　Reduce CO2 emissions ＊ 1 by 4.90% from fiscal year 2012 (annual average 1.0%)

　Increased by 8.1% ＊ 2 　×＊ 5

　Reduce water usage by 4.90% from fiscal year 2012 (annual average 1.0%)

　Reduced by 34.4% ＊ 2 ○

　Reduce the amount of specially controlled industrial waste by 4.90% from fiscal year 2012 (annual average 1.0%)

　Reduced by 17.8% ＊ 2 ○

　Reduce the amount of general industrial waste by 4.90% from fiscal year 2012 (annual average 1.0%) 　Reduced by 31.3% ＊ 2 ○

Reduce paper usage by 4.90% from fiscal year 2012 (annual average 1.0%) 　Reduced by 33.1% ＊ 2 ○

　Implement an environment patrol Completed as planned ○

Improve the mold certification pass rate 　Completed as planned ○

　Collect in forms portal site　Made progress as planned ○

　Streamline distribution routes　Cleared the 　achievement standard ○

　　The Hirose Electric Group undertakes environmental protection activities by setting annual environmental objectives.　　The overall objectives of the Hirose Electric Group are to contribute to realization of a low-carbon society, environmental protection and biodiversity conservation through sales of connectors, to reduce waste, and to operate efficiently. Based on these objectives, individual factories and divisions have set specific activity objectives and are working to reduce the environmental impacts of their operations. The group is reducing its usage of resources and generation of industrial waste through adoption of a long-term target of “reducing our usage of various items per unit of sales by 1% on average for each year up to 2020.”The objectives, targets and the level of achievement for fiscal year 2018 are shown below.　　We will continue to protect the environment as we strive to achieve the targets we set.

＊ 1　The real CO2 emission factors of individual power companies were used in the calculation.＊ 2　This percentage is calculated in reference to the target amount of usage per unit of sales.＊ 3　The achievement is evaluated using a three-grade scale ( ○ : targets achieved; △ : relevant activities in progress; and × : targets not yet achieved).＊ 4　Due to an expansion of facilities, energy usage has been reduced in respect to the benchmark year, however, the reduction target was not met.＊ 5　Although we achieved the target for reduction of energy usage, we failed to reduce CO2 emissions due to a rise of approximately 30% in the electric power-to-CO2 emissions conversion coefficient.


19

0

50

100

150

200

250

300

0

50

100

150

200

原単位

ヒロセ電機

東北

一関

郡山

20182017201620152014

125

157.3

137

164.7

130

162.8

141

177.2

154

192.4

(1000 ＧＪ) (ＧＪ/100 million yen)

0

10

20

30

40

50

60

70

80軽油

ＬＰＧ

都市ガス

灯油

ガソリン

Ａ重油

電力（夜間買電）

電力（昼間買電）20182017201620152014

郡山

13.216.7

8.8 8.4

(1000ＧＪ)

8.6

0

10

20

30

40

50

60

70

80軽油

ＬＰＧ

都市ガス

灯油

ガソリン

Ａ重油


電力（昼間買電）20182017201620152014

一関

65.957.4

63.3

(1000ＧＪ)

61.0 62.5

0

10

20

30

40

50

60

70

80軽油

ＬＰＧ

都市ガス

灯油

ガソリン

Ａ重油


電力（昼間買電）20182017201620152014

東北

(1000ＧＪ)

59.567.6

62.059.3 57.6

0

10

20

30

40

50

60

70

80軽油

ＬＰＧ

都市ガス

灯油

ガソリン

Ａ重油


電力（昼間買電）20182017201620152014

ヒロセ電機

31.6

42.239.633.8 35.6

(1000ＧＪ)

Activities to Reduce Environmental Impacts

　 Reduction of Energy Consumption

【Long-term target】Reducing our usage per unit of sales by 1% on average for each year up to 2020 (improvement by 7.73% or more by the end of fiscal year 2020 compared to the reference year 2012)

　　Based on the Hirose Electric Group’s long-term vision＊1 of reducing energy consumption by 7.73% or more by the end of fiscal year 2020 compared to the reference fiscal year 2012, we are doing business with a target of reducing energy consumption by 1% annually, on average. We have put up posters in offices and factories to encourage everyday activities for energy saving, such as turning lights off during lunchtime recess, refraining from using elevators for going up or down two floors, and reducing power consumption in rest rooms.　　Tohoku Hirose Electric and Ichinoseki Hirose Electric have been designated as “specified business operators” as defined by the Act on the Rational Use of Energy. It is saving energy in accordance with its medium-and-long term plan. Solar power generation facilities were installed at Tohoku Hirose Electric in 2017, and at Ichinoseki Hirose Electric in 2018. In addition, the lighting at the factories was changed to LED lights, and the boilers were replaced with air conditioners, so Heavy Oil A was no longer used. Energy consumption per unit of sales in

Solar power generating station (roof top)(Tohoku Hirose Electric)

Heavy oil underground tank backfilling(Koriyama Hirose Electric)

Outdoor disposal facility at the Test Center(Ichinoseki Hirose Electric)

Hirose Electric Tohoku Hirose Electric

Ichinoseki Hirose Electric Koriyama Hirose Electric

fiscal year 2018 was reduced by 2.6%, compared to the target of 5.85%, so the addition of facilities in the past several years has had an impact, with the target not being met.

＊ 1　Our targets are inconformity with the JEITA(Japan Electronics and Information Technology Industries Association) targets.

Light oil

LPG

City gas

Kerosene

Gasoline

Fule oil A

Power(purchased at night)Power(purchased during daylight hours)

Ener

gy c

onsu

mpt

ion

Ener

gy c

onsu

mpt

ion

Ener

gy c

onsu

mpt

ion

Ener

gy c

onsu

mpt

ion

Energy consumption

Ener

gy c

onsu

mpt

ion

Per

uni

t of

sal

es


Hirose Electric Ichinoseki Hirose ElectricKoriyama Hirose Electric

Per unit of sales

The target value


20

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

0

2.5

5.0

7.5

10

原単位

ヒロセ電機

東北

一関

郡山

20182017201620152014

9,61710,186

9,093 9,422

7.688.16

7.237.83

9,032

7.18

(t-CO₂) (t-CO₂/100 million yen)

協力会社

物流

その他の国と地域

インドネシア

中国

マレーシア

韓国

日本

地域別CO2排出量比率　

Japan8.6％

Malaysia 6.8％

Indonesia2.3％Logistics 1.7％

Subcontractors62.1％

South Korea 12.8％

China 5.8％

0

20

40

60

80

100

120

140使用量

20182017201620152014

(1000 t-CO₂)

123118113

121 123

SCOPE3

SCOPE2

SCOPE1

地域別CO2排出量比率　

SCOPE377,952 t

SCOPE242,649 t

SCOPE12,212 t


Hirose Electric Ichinoseki Hirose ElectricKoriyama Hirose Electric

Per unit of sales

The target value

CO2 emissions

Emis

sion

s

Per

uni

t of

sal

es

　Reduction of Greenhouse Gas Emissions

Reduction of Greenhouse Gas Emissions from Transportation

CO2 emissions by the entire supply chain

(fiscal year 2018)

　　Most greenhouse gas emissions from the Hirose Electric Group arise out of our use of electric power, fuel oil A and gasoline. Most are indirect CO2 emissions produced through electricity generation using fossil fuels.　　Japanese power companies were forced to cease operation of their nuclear power stations. As a result, their use of thermal power stations increased, thereby raising the CO2 emissions factor ＊1 approximately 30% compared to the reference year 2012. Consequently, our emissions of CO2 increased by 15.1%, meaning that the target for fiscal year 2018 of a 5.85% reduction was not met.The Hirose Electric Group also controls energy consumption and CO2 emissions at its overseas sites and its partner companies, both within Japan and overseas.　　Given increases in overseas production, particularly in Asia, CO2 emissions at overseas sites have been increasing since 2013. We will strengthen the organizational structure for management of CO2 emissions and press ahead with reduction of environmental impacts.

＊1　We used the real CO2 emission factors provided by individual electric power companies for CO2 emissions in Japan and the factors given in the 　　 Greenhouse Gas (GHG) Protocol for CO2 emissions overseas.

CO2 emissions(includes overseas sites, subcontractors

at home and overseas, logistics)＊2

Percentage of CO2 emissions in fiscal year 2018

＊2　We have calculated the overall amount by sampling primary subcontractors's CO2 emissions caused by our purchase taking into account the yearly coverage rate (52% - 85%).　　 The scope of CO2 emissions in logistics : our domestic dedicated truck, export flight, import flight.

SCOPE 1: CO2 emissions by the Hirose Electric GroupSCOPE 2: CO2 emissions by power companies used by the Hirose Electric GroupSCOPE 3: CO2 emissions by others (logistics,subcontractors, and power companies used by subcontractors, etc.)

　　To reduce greenhouse gas emissions from transportation, the Hirose Electric Group are taking the following measures:

○ Use returnable trays for packaging when shipping products○ Locally procure trays that are used in overseas factories.○ Select efficient distribution routes.○ Change shuttle trucks between Hirose factories from 2-ton trucks to 　lightweight trucks.○ Replace conventional cars used in factories with hybrid cars.

Hybrid cars

Emis

sion

s



21

0

20

40

60

80

100

0

10

20

30

40

50

60原単位目標

原単位

ヒロセ電機

東北

一関

郡山

20182017201620152014

41.646.847.5

37.637.8

49.6

41.3

50.6

40.2

33.1

(1000 ｍ³) (ｍ³/100 million yen)

0

10

20

30

40

50

60

70

0

0.01

0.02

0.03

0.04

原単位目標

原単位

ヒロセ電機

東北ヒロセ電機

一関ヒロセ電機

郡山ヒロセ電機

20182017201620152014

0.05

31.828.0

36.8 36.50.022

0.029 0.030

35.1

0.0310.025

(t) (t/100 million yen)

VOICE

Wat

er u

sage

　Reduction of Water Usage

　 Reduction of Paper Usage

　　The Hirose Electric Group is striving to reduce domestic use of water. Ichinoseki Hirose Electric works to reduce the amount of water used in production; for example, by recycling some of the water used in the plating process.　　Water usage for fiscal year 2018 reduced by 25.7% compared to the target of 5.85%.

Takahiro HachiyaPlating SectionIchinoseki Hirose Electric

Reduction of water usage in the plating process　　Ichinoseki Factory has a plating line. In the plating line, there is a water-washing process where the chemicals in each process are flushed. A lot of water is used in the process. From the past, we have adopted a multi-stage batch system, and compared to the system that constantly performs water flushing, we have been able to reduce water usage by 1/20.　　Furthermore, since fiscal year 2018, we have succeeded in reducing water usage by 10 m3/month by managing flush water according to the production line and operating conditions.　　We will continue to work on production with consciousness of water resources.

　　As part of its commitment to saving resources, the Hirose Electric Group is working to reduce paper usage.　　We are reducing paper use by printing on both sides of sheets, condensing two or more pages into a single page, printing on the back of previously used paper, using electronic documents, reducing paper document distribution in meetings by bringing laptop PCs or using projectors, and substituting electronic files for internally circulated paper documents. We also preferentially purchase paper that has an environmental label.　　As a result, paper usage for fiscal year 2018 reduced by 40.7% compared to the target of 5.85%

Water usage


Hirose Electric

Ichinoseki Hirose ElectricKoriyama Hirose Electric

Per unit of sales

The target value

Ichinoseki Hirose ElectricPlating plant

Paper usage


Hirose Electric


Per unit of sales

The target value

Reduction of distributed paper documents by using a projector

Per

uni

t of

sal

es

Pap

er u

sage

Per

uni

t of

sal

es




22

0

200

400

600

800

1000

1200

1400

0

0.2

0.4

0.6

0.8

原単位目標

原単位

ヒロセ電機




20182017201620152014

1.0

348455

0.280.36

1,094

0.91

(t)

591

0.47

512

0.40

(t/100 million yen)

0

200

400

600

800

1000

1200

1400

0

0.3

0.6

0.9原単位目標

原単位

ヒロセ電機




20182017201620152014

614510

9080.49

0.41

0.75

(t)

562

0.45620

0.49

(t/100 million yen)

　Reduction of Waste and Recycling

　Activities for recycling sold products

　　The Hirose Electric Group is handling waste produced from its business operations responsibly. Industrial waste is classified into specially controlled industrial waste and general industrial waste. We manage each of these waste types separately.　　Specially controlled industrial waste is stored and processed at specified storage facilities under strict conditions.　　We are making sure that general industrial waste is carefully separated into the proper categories by putting up signs that explain how to separate waste into plastic, metal, paper, etc. Furthermore, to generate revenue from waste, we are extracting parts of waste materials for sale as valuable substances or recyclable products.　　Ichinoseki Hirose Electric has endeavored to reduce waste disposal by neutralizing acid and alkaline wastes. However, the levels of these wastes have increased significantly as a result of the temporary breakdown of the neutralization facilities in fiscal year 2015. Later, operation of the neutralization facilities was resumed, and emissions were normalized.　　All told, the volume of specially controlled industrial waste reduced by 43.8% and that of general industrial waste reduced by 31.5%, compared to the target of 5.85%.

Disposal of specially controlled industrial waste

Disposal of general industrial waste

Collection of scrap metal Checking on sorting for recycling

　　Since connectors, which are our main products, are built into our customers’ products, it is difficult for us to recover them.　　Our business includes sales of healthcare devices to consumers. We are outsourcing recovery of packaging materials for these products to the Japan Containers and Packaging Recycling Association.

Website of the Japan Containers and Packaging Recycling Association

Am

ount

of

disp

osed

was

te

Per

uni

t of

sal

es

Am

ount

of

disp

osed

was

te

Per

uni

t of

sal

es


Hirose Electric


Per unit of sales

The target value



23

432Work 1 Time reduction 4321Work

Work performed by human on a personal computer

Reduction of work time

Reduction of Environmental Impacts through Green ICT

Introduction of “System Q&A Chatbot” that uses AI technology

　　For the purpose of reducing the number of man-hours corresponding to inquiries, the Hirose Electric Group introduced a Q&A Chatbot on how to use the system.　　At present, computerization is progressing in management of worker time sheets and various applications, but in applications that are implemented for the first time or for applications that are not performed frequently, application methods are forgotten. Therefore, inquiries have been made to colleagues or to the IT staff.　　By responding to such inquiries with a Chatbot, questions can be asked freely at any time. Thus, increase in work efficiency and a reduction of power consumption can be expected.In the future, we plan to further improve efficiency not only in System Q&A, but also by expanding horizontally into the knowledge of each department.of paper per year.　　In fiscal year 2018, the coverage range will be expanded thus, we will strive to further reduce our environmental impacts.

Improvement of work efficiency using RPA

　　Since fiscal year 2018, the Hirose Electric Group has been making efforts to improve operational efficiency by automation of operations using Robotic Process Automation (RPA). RPA is technology that automates work by having a software robot learn the work procedures performed by human on a personal computer. By having a software robot work, operational work times may be reduced a great deal. Moreover, it also improves work quality and prevents human error. In fiscal year 2018, six operations were automated with RPA. As a result, work hours in each business area can be reduced by 50 to 90%, and the effect of reduction is expected to be 324 hours annually.　　In fiscal year 2019, we will expand the scope of business of automation to further improve operational efficiency.

Chatbot response example image

Example image of operational efficiency using RPA


24

　Reduction of Environmental Impacts on Living Environment

　 Preparedness for Emergencies

　　The Hirose Electric Group is making sure that their operations comply with the relevant laws and regulations of the national and regional governments with regard to prevention of ozone layer damage, inappropriate processing of waste, water contamination, noise and vibration.　　For air conditioners, freezers, refrigerators and other equipment that use chlorofluorocarbons installed at each office, to comply with the Act on Rational Use and Proper Management of Fluorocarbons, we conduct simple inspections, periodic inspections, and chlorofluorocarbon leakage management. In accordance with the laws and regulations including waste management according to the Waste Management and Public Cleansing Act, we regularly conduct inspection and measurement to prevent pollution and contamination in the atmosphere, water quality, noise and vibration.

　　The Hirose Electric Group has compiled response manuals for a wide range of possible emergencies that could potentially have impacts on the environment. We conduct regular drills to confirm that the manuals are effective and to raise the awareness of those concerned.　　We also carry out regular fire drills to maintain workplace safety. So far, there have been no emergencies or accidents. We are determined to prevent and expend all possible means to make this happen.

○ gas leakage ○ lead contamination in discharged water○ gas leakage due to defective ventilation ○ theft of toxic materials○ broken plating machine ○ broken vessel containing discharged plating solution ○ leakage from a container used to store plating materials

● Examples of emergencies ●

Training at the time of the poisonous gases outbreak from the plating plant

Training to close the floodgates assuming the flooding of a neighboring river

Fire drills


25

Biodiversity-related postings by employees

Coral reef and tropical fi sh (Cape Maeda, Okinawa)

We went to Cape Maeda, which is a famous diving and snorkeling spot located around the middle of Naha City and the Churaumi Aquarium in Okinawa Prefecture. The coral reef was beautiful enough to be compared to a remote island and the coral was vibrant. There were many colorful tropical fi sh swimming, protected by the coral. Why is the coral reef so beautiful? I think it is because the coral reef is protected by the Blue Cave and the instructors of the tours.

Biotope

We found a “Biotope” near the company. We found this signboard under the cherry tree!!

Transparent water channel and fi sh (Shirakawa-go)

I was impressed with clearness of water going through roadside channels.

Convention to conserve the ocean (Miyako Island)

I participated in the convention for people keeping the ocean conserved. I made frant ic efforts not to damage coral when taking pictures.

　 Biodiversity Conservation

　　The Hirose Electric Group is conserving biodiversity by developing, producing and selling environmentally friendly products.　　One of the measures we take to raise biodiversity consciousness among all Hirose Electric Group personnel is to provide them with e-learning opportunities on the subject. We then ask them to make a pledge regarding, and to implement, specific actions that they will take in everyday situations to come into contact with biodiversity, help conserve biodiversity, and communicate the message of biodiversity. Each person makes this pledge, which we call

“My Action Pledge,” every year, and self-assesses the results of his/her pledge for the previous year, makes a fresh pledge, and implements it.　　In addition, in club activities for employees to become better acquainted, there is a club that offers opportunities to “feel” and “communicate” through biodiversity activities, and it has helped raise awareness and dissemination of biodiversity.


26

■　May　Ishigaki Island/Taketomi Island, Okinawa　■

Photography Club

Raising awareness of biodiversity　 — Club activities —　The Photography Club carries out activities to enhance biodiversity by taking pictures of beautiful nature scenes as well as aspects of living things. The Scuba Diving Club offers an opportunity to think about biodiversity through experiencing the beautiful ecosystem of the sea.

Scuba Diving Club

27


■　Nov.　Chibishi, Okinawa　■

■　Aug.　Tokashiki, Okinbawa　■

■　Sep.　Atami　■


27

28


　Social Action Programs

Blood Donation (Made at Each Business Site)　　All the business sites of the Hirose Electric Group annually participate in a blood donation drive organized by the Japan Red Cross Society.

Cleanup Activities in Local Communities　　Since their establishment, Tohoku Hirose Electric and Ichinoseki Hirose Electric have been cleaning up their respective neighborhoods on a regular basis, and will continue to do so. By doing so, they are contributing to the local communities.

Picking up litter around the company (Tohoku Hirose Electric)

Picking up litter around the company (Ichinoseki Hirose Electric)

Participation in a blood donation drive (Yokohama Center)

Communication

Picking up litter around the company (Koriyama Hirose Electric)

The “Silver Medal for Merit” awarded by the Japanese Red Cross Society

　　On October 4, 2017, our blood donation activities over the years have won admiration, and the Japanese Red Cross Society awarded us with the “Silver Medal for Merit”.　　We will make positive approaches in blood donation activities as a social contribution activity from now on.

29


Communication with Suppliers　　The Hirose Electric Group holds a regular TOP training workshop (workshop on quality) and a meeting to exchange New Year's greetings with its suppliers in order to forge a closer partnership.　　In addition, with a view to incentivizing suppliers to implement environmentally friendly practices, we make a list that ranks suppliers based on a range of evidence submitted by the suppliers themselves, and make the list public.


Complaints on Environment from the Neighborhood and/or Stakeholders　　Nothing in particular.

Formulation of Green Procurement Guidelines　　As part of its activities to preserve the environment and protect biodiversity, the Hirose Electric Group has formulated the Hirose Electric Group Green Procurement Guidelines in order to preferentially procure parts and materials that have a low impact on the environment, taking the lifecycle of each product into consideration. The guidelines apply to components that make up products, materials used during the manufacturing process, and the packaging materials used in the shipping of products. They also apply to the machinery and tools used at manufacturing sites. We are making concerted efforts to implement green procurement. We have distributed the guidelines to our suppliers and asked them to establish their own environmental management systems, reinforce quality control of chemicals contained in products, and submit information about such chemicals.

Hirose Technology Exhibitions　　Every three years, the Hirose Electric Group holds a technology exhibition. In 2016, Hirose Technology Exhibition CONNEXTION 2016 was held in Tokyo and Osaka. The exhibition in 2016 presented the entire range of new products and technologies that have been designed to meet the needs of the future, including prototypes. The products and technologies were arranged by purpose and application field. Large numbers of visitors congregated around the exhibits, including visitors from overseas.

Meeting to exchange New Year's greetings

Scene of the Hirose Technology Exhibition

　 Communication with Stakeholders

30



30

　 Activities of Domestic Factories to Reduce Environmental 　　 Impacts

Activities at Group Sitesto Reduce Environmental Impacts

Koriyama Hirose Electric (Koriyama Factory)Address: 87-3, Ogawara, Koriyama, Fukushima, 963-8828, JapanBusiness: Production of ribbon-cable connectors, interface connectors, nylon connectors and connectors for automobiles


Makoto SakamakiAMC Production Section

customers and employees. However, by converting to electric water heaters, the CO2 generated by combustion is reduced, leading to a reduction in the risk of global warming.(3) Shifting all wooden pallets to resin pallets　　At Koriyama Factory, the pallets for placing and transporting products, used within the factory and with assembly partner companies as well, have all been shifted from wood to resin. Convenient handling and improved strength make the pallet life much longer than wood, and there is no need for deforestation.

　　In the future, we aim to promote further recycling and reuse activities so that we can achieve environmentally friendly production.

　　Koriyama City is a designated core city, and the third largest city in the Tohoku region after Sendai and Iwaki. At the same time, it is located in an area blessed with a rich natural environment such as Lake Inawashiro and Asaka Sosui. In fi scal year 2018 at the Koriyama Factory in Koriyama City, we targeted a reduction in the environmental impacts by working on the following items.

(1) Sorting and collection of metal scraps　　Since fiscal year 2012, we have been collecting metal scraps. By sorting and collecting as well as using recyclables through using a classification system for refinement, it has become possible to greatly contribute to the reduction of industrial waste. When it was fi rst implemented, sorting could not be done only by appearance, however, by deciding the sorting method and operation procedure, full-on sorting and collection was established.(2) From gas powered water heaters to environmentally friendly electric water heaters　　Up to now, propane gas has been used to supply hot water to our

Metal scrap sorting

[Koriyama Factory] Introduction of scrap metal collection

　　The recycling method for metal scrap at Koriyama Factory, which we have been working on since fiscal year 2012, is not limited to collecting scrap simply generated in the process. Setting the scrap that is to be recovered from the monthly production results as a theoretical value, we compare the scrap with the collected results,

and check to see if items that should be recycled have not been discarded. These efforts have made it possible to collect items that have previously been discarded. We are also working on operations to collect and sort metal materials and plating materials of every kind and are working on becoming more thorough with recycling. Daisuke Asano

Production Engineering Section


31

【Miyako Factory】　Introduction of energy-saving equipment into new building construction　

　　Introduction of energy saving features into the precision metal mold building where construction was begun in July 2017 and completed in May 2018.

1. Energy saving by solar power generation　 We installed a 144-panel 40kW photovoltaic power generating system on the roof.　 The 20kWh storage battery can store a portion of photovoltaic power and nighttime　 electric power, and it can be used not only for the installed precision metal mold 　 building but also throughout the factory in case of emergencies.2. Energy saving built in for air conditioning　 By using a double layer folded structure in the roof and a high-performance heat 　 insulating material on the walls*, we realized an energy savings of about 　 49% compared to the conventional air conditioned building. (Construction company simulation)　　*Measuring 35mm, there is about a 10 fold improvement in insulation eff ect compared with the (100mm concrete + 45mm urethane foam) structure.

Precision metal mold building

Tohoku Hirose Electric (Miyako Factory)Address: 21-2, 2nd Chiwari, Akamae, Miyako, Iwate, 027-0202,JapanBusiness: Production of nylon connectors (primary processing and assembly), and development and production of advanced metal molds and automated machinery　


Shinichi KawamuraQuality Control Section

　　Miyako Factory is located in Miyako City of Iwate Prefecture in the Sanriku Reconstruction National Park, which is blessed with the mountains, rivers and the sea. It is located in the easternmost region of Honshu, where the sun rises earliest in mainland Japan. Facing the Pacifi c Ocean, the fi shing industry is prosperous. In order to protect this rich natural environment, Miyako Factory is working hard to reduce environmentally hazardous substances.　　We view environmental impact-reduction = quality improvement = cost reduction. Defective products are directly linked to waste of energy and resources (people, goods, and money). In addition to daily operations, we are promoting quality improvement through QC circle activities and improvement proposals and promoting eff ective use of energy and resources, and reduction of waste.　　Miyako Factory is also working to improve the availability of automated machines with the aim of improving the productivity of manufacturing facilities. By increasing the number of units produced per unit time, we are contributing to the reduction of energy consumption per unit of sales.

Yosuke OhmuraTH Production Equipment Section

Roof structure External walls Annual power consumption (%)

Conventional structure

Single foldedplate

Conventional material 100

New building structure

Double folded plate

High performance material 51

Comparison of thermal insulation eff ect


32

Solar power generating station

Ichinoseki Hirose Electric (Ichinoseki Factory)Address : 14-36, Todai, Ichinoseki, Iwate, 021-0822, JapanBusiness: Production of coaxial connectors, high-frequency/ optical devices, optical connectors, interface connectors, and processed components

　　Ichinoseki Factory is located in a beautiful natural area with a view of Mt. Kurikoma, a central symbol of the Kurikoma Quasi-national Park, far to the east, and abuts the Kitagami River. Surrounded by this exceptional natural environment, we take into consideration how our business activities aff ect the everyday life of those living in the local community. 　　In fiscal year 2018, Ichinoseki Factory completed the introduction of the following environmentally friendly infrastructure facilities (solar power generation equipment). In fiscal year 2019, it plans to change the lighting to LED lights.

(1) Introduction of environmentally friendly infrastructure facilities　　Installation of solar power generation equipment is complete. We expect to reduce annual power consumption by 288,000 kWh (approximately 4.32 million yen) and CO2 emissions by 156,000 kg-CO2 reduction.(2) Promoting LED Lighting　　In fiscal year 2019, we will proceed with activities to promote LED lighting. We expect to reduce annual electricity consumption by 245,000 kWh (approximately 3.67 million yen) and CO2 emissions by 105,000 kg-CO2 reduction. 　　We are reducing impacts on the global environment and preserving biodiversity by continuing with the above-mentioned activities and making sure that our business activities do not involve the use of materials that adversely aff ect the environment.

[Ichinoseki Factory] Introduction of solar power generation equipment

　　Ichinoseki Factory introduced solar power generation equipment in October 2018 as energy-saving equipment.　　The factory site was prepared, and 880 solar panels were installed. The power generation capacity is 200 kW. The electricity generated here is used directly in the factory’s manufacturing facilities, test equipment, lighting equipment, etc. to realize energy conservation.

Tatsuya ChibaGeneral Aff airs Section


Tatsuya ChibaGeneral Aff airs Section


33




Hirose Electric Head Office

New testing center building

【Inchinoseki Factory】 Selection of energy-efficient facilities for a new test center building　

　　At Ichinoseki Factory, the new testing center building commenced operations in March 2018. The new testing center building has been designed with the following environmental impact reductions. Going forward, we will make eff ective use of the system to reduce impact on the environment.

● Each test machine is network-connected and visually monitored online.● We have introduced a system for 24-hour monitoring of ignition information in

energization testing, gas leakage information in gas corrosion test equipment, andwater leakage information around water piping.

● An electric power monitoring system enables discrete monitoring of powerconsumption area by area. We will use this system to promote energy conservation.

● Other areas　　• Air conditioner effi ciency improvement by reducing the number of 　　　windows　　• Power saving by LED lighting　　　(Reduction of electric power by 5 kWh per year from the levels of　　　 conventional fl uorescent lamps)　　• Improvement in air conditioning effi ciency and noise reduction through outdoor installation of intake and exhaust vibration equipment 　　　(Air Conditioning Effi ciency : 40% reduction in electricity use; 　　　Noise Reduction : Up to 20dB reduction)

Takuya Kubota Ichinoseki Test Center

Locations of the head offi ce and factories

Hirose Electric Yokohama Center

34


Hirose Electric EUROPE B.V.Hirose Electric (USA), INC.

HIROSE KOREA CO., LTD.

Hirose Electric (CHINA) CO., LTD.

【SHANGHAI】

■ SHANGHAI BRANCH

■ BEIJING BRANCH

■ SHENZHEN BRANCH

Hirose Electric (SUZHOU)

CO., LTD.

■ STUTTSART OFFICE(GERMANY)

■ NUREMBERG OFFICE (GERMANY)

■ HANOVER OFFICE (GERMANY)

■ MILTON KEYNES OFFICE(U.K.)

■ PARIS OFFICE (FRANCE)

■ MILANO OFFICE(ITALY)

■ PENANG LIAISON OFFICE (MALAYSIA)

■ THAILAND PEPRESENTATIVE OFFICE

Hirose Electric MALAYSIA SDN. BHD.

Hirose Electric SINGAPORE PTE. LTD.P.T. Hirose Electric

INDONESIA

Hirose Electric TECHNOLOGIES

(SHENZHEN) CO., LTD.

Hirose Electric (DONGGUAN)

CO., LTD.

Hirose Electric HONG KONG

TRADING CO., LTD.

Hirose Electric TAIWAN CO., LTD.

Hirose Electric

HONG KONG CO., LTD.

■ BOSTON OFFICE

■ DALLAS OFFICE

■ DETROIT OFFICE

■ IRVINE OFFICE

■ SAN JOSE OFFICE

【CHIKAGO US Headquarter】【NETHERLANDS, EUROPE Headquarter】

Hirose Electric INDIA. PVT. LTD.

■ BANGALORE OFFICE

■ DELHI OFFICE

34

　Activities of Overseas Sites to Reduce Environmental 　　　 Impacts　　Since the first signing of an overseas agency agreement in 1967, the Hirose Electric Group has steadily expanded its overseas business operations. In addition to putting in place a sales network that interconnects Japan, Asia, America and Europe, we have established overseas production sites to meet worldwide demand. We intend to press ahead with globalization of our design and development capabilities in order to enhance our international brand and global market share.　　As we become more globally oriented and active, we are promoting activities to reduce environmental impacts in ways that are appropriate for individual sites. In particular, the production sites that generate relatively large environmental loads have obtained ISO14001 and ISO9001 certifications and established systems for ensuring ongoing improvement in their endeavors to protect the environment, comply with relevant laws and regulations, and prevent contamination.　　We have also established a watertight quality control system with regard to hazardous materials contained in products, as part of our efforts to promote product recycling and green procurement. For example, we have installed X-ray fluorescence spectrometers to implement our slogans of “Do not allow entry of, “ “Do not mix” and “Do not produce” hazardous materials in our products.

35


35

Activities Certifications and participation in relevant organizations

1970s 1980s

1990s

Ceases cadmium plating Stops the use of asbestos and specified bromine fire retardants Eliminates chlorofluorocarbons

1999～　2000

2002

Ichinoseki Hirose Electric Co., Ltd., Koriyama Hirose Electric Co., Ltd. and Tohoku Hirose Electric Co., Ltd. acquires ISO14001 certification Hirose Electric (including the above domestic factories) expands the certification area and switches to an integrated ISO14001 certification.　

2003 2004

2005

2006

2007

2008 2009 2010

2011

2012

2013

2014 2015

2016 2017

2018

Promotes lead-free products Stops the use of chlorine organic solvents (dichloromethane) Formulates the Hirose Electric Group Code of Conduct

Complies with the RoHS directive (begins to supply substitute products not containing RoHS prohibited substances) Installs X-ray fluorescence spectrometers in all production sites both in Japan and abroad Complies with the RoHS directive (All major products no longer contain RoHS prohibited substances) Stops the manufacture of products that do not comply with the RoHS directive (except for some customized products) Increases the number of X-ray fluorescence spectrometers (at Koriyama and Ichinoseki Factories) Begins preparations to comply with the REACH directive Complies with the EuP directive (directive on eco-design of energy-using products) PFOS survey (compliance with the Stockholm Convention on Persistent Organic Pollutants (POPs Convention)) Revises the Hirose Electric Group Code of Conduct Formulates the information security policy Formulates the business continuity plan (BCP)

Begins to increase halogen-free products Establishes the CSR Committee Promotes reduction in use of resources and CO2 emissions Begins preparations to comply with the revised RoHS　 Begins activities to preserve biodiversity Revises the Hirose Electric Group Code of Conduct

Ceases manufacture of products that contain dibutyltin compounds Begins preparations for revision of ISO14001 Begins preparation for the expected revision to the RoHS directive (banning of phthalate-containing products) Completes migration to ISO14001:2015 Responds to the revision to the RoHS directive (banning of phthalate-containing products and guidance on alternative products) Completes responses to the revision to the RoHS directive (banning of phthalate-containing products and guidance on alternative products)

Hirose Electric Malaysia , P.T.Hirose Electric Indonesia and Hirose Electric (Dongguan, China) acquires ISO14001 certification Participates in Japan Green Procurement Survey Standardization Initiative (JGPSSI)

Joins the Joint Article Management Promotion Consortium (JAMP)

Hirose Electric (Suzhou, China) acquires ISO14001 certification

Participates in the UN Global Compact Participates in domestic subcommittee, VT62474, of IEC/TC111

Withdraws from domestic subcommittee, VT62474, of IEC/TC111

　 History of social and environmental activities

History of social and environmental activities

36

　　Based on the in format ion prov ided in the Sustainability Report of the Hirose Electric Group, I have assessed the extent of information disclosure of the group’s CSR activities and activities to reduce environmental impacts, and have identified both commendable aspects and areas where improvement is desirable.

Activities in fiscal year 2018

　　First, I think the intention to comply with laws and regulations, as well as the intention to fulfill social responsibilities with higher ethical standards and integrity, is well understood throughout the company and the point that the Code of Conduct is clearly shown and the promotion system is established should be highly valued. In particular, the fact that systematic design reviews have not only meet customer requirements and laws, but also reduced paper usage, shortening periods and reducing cost should be highly appreciated. Furthermore, if the function of life cycle cost accounting could be added, resource conservation could be expected.　　Next, not only did the company work on energy-saving measures for LED lighting and preferable air conditioning to reduce environmental impacts, it also introduced solar

power generation equipment to Miyako and Ichinoseki Factories, which showed great progress. In fiscal year 2018, although the company’s reduction of energy usage per unit of sales was 2.6%, unable to achieve its target of 5.85%, due to the addition of facilities, I hope that the company will continue to make efforts with a long-term view, without being limited to temporary results. In addition, improvements in printing methods and digitizing materials have greatly reduced paper usage by 40.7%, whereas the target was 5.58%. I would say this is a great achievement. The company has also achieved its target for waste, but I expect it would continue to promote proper disposal in the future as well, while it takes on the challenges of reducing the amount of toxic poisons found in specific wastes, by introducing new technologies and revising processes.

Future activities

　　I think we can value the fact that the relationship with the SDGs has been settled in the Sustainability Report for this fiscal year, in contributing to “Sustainable Development Goals (SDGs)” through business and environmental activities. I hope that the company will promote corporate activities with consideration of SDGs in the future, as an international corporation. Also, the connector, which is a major product of the Hirose Electric Group, has been qualitatively evaluated for its contribution to a sustainable society and reducing environmental impacts. However, it may be considered that the direction and progress of development will become clearer by addressing quantitative social and environmental impact assessments.　　Finally, I hope that the company will continue to challenge itself globally to contribute to a sustainable soc ie ty w i th i t s h igh - reach ing ph i losophy and technological capabilities.

Response to the Third-party Opinion

Kazue IchinoTakahashiProfessor, Faculty of Engineering,Department ofEnvironmental Systems Sciences, Musashino University.

Third-party Opinion

　　Over the last three consecutive years, we received an evaluation of our Sustainability Report from Professor Kazue Takahashi, Department of Environmental Systems Sciences, Faculty of Engineering, Musashino University. We sincerely appreciate her input.　　Our company, being a manufacturer, is required to respond to customer requests and comply with the requirements, however, we consider reducing resource usage at the design stage and by checking product design and production process design during design review, we try to shorten the development period and reduce the risk of producing defects. However, our target has not yet been achieved due to further miniaturization and requests for additional functions. Although we received some specific recognition this time, we have also received some additional advice, thus we will continue to make efforts.In order to reduce environmental impacts, we have installed LED lighting and renewed air conditioners as well as installed solar panels. However, due to factors such as the addition of facilities in each factory, we could not achieve our target for fiscal year 2018. In this respect, we shall continue our efforts from a long-term perspective.　　In this Sustainability Report, we have clearly shown our specific relationships and initiatives for SDGs. As a member of the international community, we will strengthen our activities to achieve the common goals by clearly showing what we can do to achieve those goals.

Naofumi MiyazakiManager Environment Management Office

39

Contact Information

Environment Management OfficeHirose Electric Co., Ltd.

6-3, Nakagawachuo 2-chome, Tsuzuki-ku, Yokohama, Kanagawa, 224-8540, JapanTEL: +81-45-620-3563; FAX: +81-45-591-3727

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